I ran into this exact scenario a couple years back. My credit wasn't terrible, but it wasn't great either, and I debated waiting to boost my score before buying land. Ended up doing some rough math and realized that even a modest increase in land prices would outweigh the savings from a slightly lower interest rate. Has anyone factored in other costs like property taxes or maintenance while holding onto empty land? Those can sneak up on you too...
Totally relate to this. A few years ago, we bought a small plot of land thinking we'd build our dream home "eventually." Did the math on interest rates and figured we'd save by locking in sooner rather than later. But yeah, those property taxes...they definitely caught us off guard. Even though it wasn't a huge amount, it added up over a couple years, especially since we weren't actively using the land.
Also, depending on the area, you might have to deal with things like mowing or clearing brush to meet local codes. We got a notice once because weeds had grown too tall—hadn't even thought about that. Ended up paying someone to handle it since we lived a couple hours away.
Still don't regret buying early though. Land prices in our area jumped significantly, so even with the extra costs, we came out ahead. Just something to keep in mind if you're planning to hold onto empty land for a while.
"Also, depending on the area, you might have to deal with things like mowing or clearing brush to meet local codes."
We ran into something similar last year. After buying our lot, we thought we'd just sit tight until building made sense financially. Didn't even cross our minds that we'd have to regularly clear brush and maintain the land for local compliance. Fortunately, we live nearby and could handle it ourselves, but it still took up weekends we hadn't planned on losing. Definitely something I'd advise others to factor in before purchasing.
"Fortunately, we live nearby and could handle it ourselves..."
You're lucky you were close enough to manage it. For folks farther away, hiring someone locally to maintain the property can quickly eat into any financial advantage of waiting to build. Definitely worth crunching those numbers beforehand...
Good point about maintenance costs—people often underestimate how quickly those expenses add up. Even something as simple as mowing or clearing brush can become a headache if you're not nearby. Plus, there's always the risk of unexpected issues popping up (fallen trees, dumping, etc.). Makes me wonder, has anyone here had luck negotiating with neighbors or local farmers to handle upkeep informally? Seems like it could be a win-win arrangement...
